This Not To Compete Agreement is designed for use in Malaysia where businesses need to protect their legitimate interests from competition by former employees, business partners, or sellers of businesses. The document becomes particularly relevant in situations involving access to confidential information, trade secrets, customer relationships, or specialized knowledge. It must carefully balance the protection of business interests with Malaysian legal requirements for reasonable restrictions in terms of duration, geographical scope, and prohibited activities. The agreement includes specific provisions for consideration, enforcement mechanisms, and remedies in case of breach, all structured to ensure compliance with Malaysian contract law and competition regulations.
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1. Parties: Identification of the contracting parties, including the employer/business entity and the individual/entity being restricted
2. Background: Context of the agreement, relationship between parties, and legitimate business interests being protected
3. Definitions: Key terms including 'Restricted Business', 'Restricted Period', 'Restricted Territory', 'Confidential Information', and 'Competing Business'
4. Non-Compete Obligations: Core restrictions on competitive activities, including specific prohibited actions and duration
5. Geographic Scope: Definition of the territorial limits where restrictions apply
6. Duration: Specific timeframe for the non-compete obligations
7. Confidentiality Obligations: Protection of confidential information and trade secrets
8. Acknowledgment of Reasonableness: Statement confirming the reasonable nature of restrictions and their necessity
9. Consideration: Details of the consideration provided in exchange for the non-compete obligations
10. Remedies: Available remedies in case of breach, including injunctive relief and damages
11. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction for disputes
1. Garden Leave: Provisions for paid leave during notice period to prevent immediate competition - used for senior executives
2. Non-Solicitation: Additional restrictions on soliciting employees, customers, or suppliers - included when business relationships need specific protection
3. Training and Development Costs: Provisions regarding repayment of training costs - relevant when significant investment in employee development exists
4. Exit Obligations: Specific procedures and obligations upon termination of employment/relationship
5. Severability: Provisions allowing court modification of unreasonable terms - recommended for complex restrictions
6. Assignment Rights: Rights to assign the agreement to successors/purchasers - relevant in business sale contexts
1. Schedule 1 - Restricted Territory: Detailed map or list of geographical areas where restrictions apply
2. Schedule 2 - Restricted Businesses: Comprehensive list of specific competitors or types of businesses considered competitive
3. Schedule 3 - Confidential Information: Detailed categorization of protected confidential information and trade secrets
4. Schedule 4 - Consideration Details: Breakdown of any financial or other consideration provided for the restrictions
5. Appendix A - Notice Requirements: Specific procedures and timeframes for giving notices under the agreement
Relevant legal definitions
Agreement
Business
Competing Business
Confidential Information
Effective Date
Employer
Employee
Intellectual Property Rights
Material Interest
Notice
Parties
Restricted Activities
Restricted Area
Restricted Business
Restricted Customers
Restricted Period
Restricted Products
Restricted Services
Restricted Suppliers
Restricted Territory
Trade Secrets
Working Day
Business
Competing Business
Confidential Information
Effective Date
Employer
Employee
Intellectual Property Rights
Material Interest
Notice
Parties
Restricted Activities
Restricted Area
Restricted Business
Restricted Customers
Restricted Period
Restricted Products
Restricted Services
Restricted Suppliers
Restricted Territory
Trade Secrets
Working Day
Clauses
Relevant Industries
Technology
Financial Services
Healthcare
Manufacturing
Professional Services
Telecommunications
Pharmaceuticals
Research and Development
Consumer Goods
Energy
Engineering
Consulting
Software Development
Biotechnology
Relevant Teams
Executive Leadership
Sales
Research & Development
Product Development
Technical Operations
Business Development
Customer Relations
Strategic Planning
Information Technology
Engineering
Relevant Roles
Chief Executive Officer
Chief Technology Officer
Sales Director
Senior Software Engineer
Research Scientist
Business Development Manager
Technical Lead
Senior Consultant
Product Manager
Regional Manager
Key Account Manager
Senior Research Engineer
Head of Operations
Chief Financial Officer
Managing Director
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